The Residential Construction Contract serves as a fundamental legal instrument for managing residential construction projects in Indonesia. This document is essential when a property owner engages a contractor to construct a residential property, whether it's a single-family home, villa, or residential complex. It encompasses all crucial aspects of the construction process, including detailed specifications, payment structures, timelines, and quality requirements. The contract must comply with Indonesian construction laws, particularly Law No. 2 of 2017 on Construction Services and Law No. 1 of 2011 on Housing and Settlement Areas, while also adhering to local building codes and permit requirements. It includes provisions for risk allocation, dispute resolution, and warranty obligations, making it suitable for both small-scale residential projects and larger development initiatives.
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1. Parties: Identification of the owner/client and the contractor, including full legal names, addresses, and registration details
2. Background: Context of the agreement, including property details and purpose of construction
3. Definitions: Definitions of key terms used throughout the contract
4. Scope of Work: Detailed description of construction work to be performed, including general specifications and standards
5. Contract Sum and Payment Terms: Total contract value, payment schedule, and payment conditions
6. Timeline and Completion: Project schedule, completion date, and milestones
7. Contractor's Obligations: Key responsibilities including quality standards, materials, workforce, and compliance with regulations
8. Owner's Obligations: Owner's responsibilities including site access, permits, and approvals
9. Variations and Changes: Process for handling changes to scope, specifications, or contract terms
10. Quality and Inspections: Quality standards, inspection procedures, and acceptance criteria
11. Warranties and Defects: Warranty terms, defects liability period, and rectification procedures
12. Insurance and Indemnity: Required insurance coverage and indemnification obligations
13. Termination: Grounds and procedures for contract termination
14. Dispute Resolution: Procedures for handling disputes, including mediation and arbitration
15. Governing Law: Specification of Indonesian law as governing law and jurisdiction
1. Force Majeure: Provisions for unforeseen circumstances preventing contract performance - include if project is in area prone to natural disasters
2. Environmental Protection: Specific environmental protection measures - include if project has significant environmental impacts
3. Security of Payment: Additional payment security mechanisms like bank guarantees - include for high-value contracts
4. Intellectual Property: IP rights provisions - include if custom designs or innovative construction methods are involved
5. Confidentiality: Confidentiality obligations - include if sensitive information is involved
6. Local Community Relations: Provisions for managing community impact - include in densely populated areas
7. Staging and Storage: Requirements for material storage and staging - include if site has limited space
8. Utilities and Services: Provisions for temporary utilities during construction - include if site lacks existing connections
1. Schedule 1 - Construction Drawings: Detailed architectural and engineering drawings
2. Schedule 2 - Technical Specifications: Detailed material and construction specifications
3. Schedule 3 - Bill of Quantities: Itemized list of materials and works with quantities and prices
4. Schedule 4 - Construction Schedule: Detailed timeline with milestones and critical path
5. Schedule 5 - Payment Schedule: Detailed breakdown of payment installments and milestones
6. Schedule 6 - Required Permits and Approvals: List of necessary permits and responsibilities for obtaining them
7. Schedule 7 - Quality Assurance Plan: Detailed quality control procedures and standards
8. Appendix A - Site Plan: Detailed site layout and boundaries
9. Appendix B - Insurance Requirements: Specific insurance types and coverage amounts required
10. Appendix C - Form of Bank Guarantee: Template for required bank guarantees or performance bonds
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